Equity Derivatives Trading
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Source : http://www.livemint.com
Activity:
2 comments
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last activity : 07 06 2010 20:18:04 +0000
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(SEBI) has introduced mini-contracts in the derivatives markets based on the Sensex and the Nifty indices to attract retail investors into the ever-growing derivatives market.
The step comes in the backdrop of recommendations of the Derivatives Market Review Committee (DMRC) headed by Professor M. Rammohan Rao.
BSE said in a release, “The small size of the contract would be attractive for retail investors as there would be comparatively lower capital outlay, lower trading costs, more precise hedging and flexible trading. It is a step to encourage and enable small investors to mitigate risk and enable easy access to Sensex, through Futures & Options.”
SEBI said that the introduction of these products is a step intended to progressively encourage markets to move onshore.
Its a step to encourage and enable small investors to mitigate risk and gain easy access to India’s popular index, Sensex, through futures and options
The mini derivative contract on Index (Sensex and Nifty) shall have a minimum contract size of Rs 1 lakh at the time of its introduction in the market. The risk containment and other measures applicable for existing exchange traded equity index derivatives contracts will be applicable to the mini derivative contracts as well, an official release said.
The Security Symbol for SENSEX mini Contracts will be MSX. The contract is available for one, two & three months along with weekly options.
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just becuse the market is doing really well at the moment everyone are coming out with IPO's to expand their businesses across the country, and though it is a good option i would wait for some more time till the market rally what we are seeing... |
This is not the complete news. There is a catch in it. And that is the aspiring buyers are not allowed to sell the share for three years. And after hearing this the list of buyers has got shortened. |
I am sorry to say this but I think in the exact opposite direction, the govt. is being the biggest shareholder in these companies and the profit margin of these companies is also negative every year. |